The Great Wealth Transfer: What It Means for Family Business Owners

Written by Brian Mann, Vice President/Private Wealth Advisor
Originally published in the Orange County Business Journal, May 19, 2025

Being a family business owner means you’re not just building for today, but also for your heir’s future. You’ve invested time, capital, and heart. But here’s the big question: Is your succession plan solid?

Over the next 20 years, more than $84 trillion will transition as Baby Boomers transfer their wealth¹. For family-business owners, this “Great Wealth Transfer” is not only about inheritance but also business continuity, legacy, and family dynamics.

Transferring the Business
Family businesses are living assets with ties to your identity and income. Yet, many owners lack a transition plan. According to PwC, just 34% of family businesses have a formal succession strategy.²

Whether you intend to pass the reins to children, sell it, or create a hybrid plan, the process demands expert guidance. Waiting may put your company, and family harmony, at risk.

Planning for Succession
A strong succession plan includes:

• Clear leadership transition
• Formal valuation and buy-sell agreements
• Coordination with your estate and retirement plan
• Contingency plans for the unexpected

Early planning allows time for mentorship, development, and responsibility transfer.

Equalizing Distributions
Many business owners struggle with treating their children fairly, but equality could jeopardize the company’s future.

Here are ways to address that challenge:

• Use non-business assets to equalize value.
• Establish a structured buyout, where the active child purchases siblings’ shares.
• Split shares into classes, giving management control to one heir while others share in financial benefits.
• Use life insurance to provide equivalent inheritance.
• Communicate to align expectations.

A thoughtful plan considers effort, interest, and fairness—not just numbers.

Protecting Retirement
Often, the business is the retirement plan; however, that can be risky. A healthy transition includes diversifying personal wealth; creating liquidity; and structuring retirement income independent of company profits.
You’ve built a business—now build a solid retirement that doesn’t rely on it.

Engaging the Next Generation
The next generation brings new ideas and values, but they may lack experience. Involve them early. Whether through formal governance, mentoring, or advisory roles, giving them a seat at the table prepares them for leadership and deepens their commitment.

At the same time, not every child wants to be involved. What matters is that everyone understands the plan. When families are aligned, transitions are smoother—and relationships remain intact.

Creating a Lasting Legacy
The “Great Wealth Transfer” is your opportunity to preserve what you’ve built and empower your family for the future.

The path forward starts with planning. Let’s build a roadmap together—one that respects your values, protects your business, and secures your legacy.

Brian Mann
Vice President/Private Wealth Advisor
First Bank Wealth Management
(805) 563-6453
[email protected]

Brian Mann, Vice President/Private Wealth Advisor at First Bank Wealth Management, specializes in investment management, family business transitions, and multi-generational wealth strategies. Visit firstbankwealth.com.